Private companies care about capital efficiency, not service efficiency. The two concepts are occasionally related but not always. When it comes to public utili

Private companies care about capital efficiency, not service efficiency. The two concepts are occasionally related but not always. When it comes to public utilities, however, you want a guarantee that the latter concern will win over the former, always, even if it doesn't make economic sense. It's a guarantee that the private sector just cannot give - because their priority is profit, not service levels; they are only interested in delivering the minimum amount of service that results in profits. They can end up paying dividends even when the service is failing, by cannibalizing the business if necessary. This is not acceptable for public utilities. Things can be run just fine by public institutions; the BBC is an example of that - despite the occasional inefficiency, it has managed to deliver high-quality content to pretty much everyone over the decades, and even spearheaded new technologies (from BBC micro to iPlayer). Which, incidentally, is why Tories hate it with such a passion. As long as there is accountability and a degree of oversight, with an engaged public, state-run enterprises can do well. The problem is that the political classes have skirted their responsibilities.